Why the Public Lost Its Craving for Pizza Hut
In the past, the popular pizza chain was the top choice for groups and loved ones to indulge in its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.
But fewer customers are frequenting the brand nowadays, and it is reducing a significant portion of its British restaurants after being rescued from insolvency for the second occasion this year.
I remember going Pizza Hut when I was a child,” says Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, aged 24, she says “it's not a thing anymore.”
According to a diner in her twenties, some of the very things Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now less appealing.
“How they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have reduced quality... They provide so much food and you're like ‘How is that possible?’”
Because food prices have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to operate. The same goes for its locations, which are being reduced from 132 to 64.
The company, in common with competitors, has also seen its expenses increase. This spring, employee wages rose due to higher minimum pay and an increase in employer taxes.
Two diners mention they used to go at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “not good value”.
Depending on your order, Pizza Hut and Domino's costs are close, explains an industry analyst.
Even though Pizza Hut does offer pickup and delivery through third-party apps, it is missing out to big rivals which specialize to off-premise dining.
“Another pizza company has managed to dominate the delivery market thanks to intensive advertising and frequent offers that make consumers feel like they're saving money, when in reality the base costs are on the higher side,” explains the analyst.
Yet for these customers it is justified to get their special meal delivered to their door.
“We absolutely dine at home now instead of we eat out,” explains Joanne, matching recent statistics that show a drop in people visiting informal dining spots.
Over the summer, quick-service eateries saw a notable decrease in customers compared to last summer.
There is also another rival to pizza from eateries: the cook-at-home oven pizza.
A hospitality expert, global lead for leisure at an advisory group, explains that not only have retailers been offering premium prepared pies for a long time – some are even promoting pizza-making appliances.
“Evolving preferences are also contributing in the success of fast-food chains,” comments Mr. Hawkley.
The rising popularity of protein-rich eating plans has driven sales at chicken shops, while hitting sales of dough-based meals, he notes.
Since people dine out less frequently, they may prefer a more upscale outing, and Pizza Hut's American-diner style with booth seating and nostalgic table settings can feel more retro than upmarket.
The “explosion of high-quality pizzerias” over the last 10 to 15 years, such as boutique chains, has “completely altered the public's perception of what excellent pie is,” says the food expert.
“A light, fresh, easy-to-digest product with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's downfall,” she says.
“Who would choose to spend £17.99 on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who operates a small business based in Suffolk comments: “It's not that fallen out of love with pizza – they just want improved value.”
Dan says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.
At a small pizza brand in Bristol, the founder says the pizza market is broadening but Pizza Hut has neglected to introduce anything new.
“Currently available are individual slices, regional varieties, thin crust, sourdough, wood-fired, deep-dish – it's a heavenly minefield for a pie fan to explore.”
The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any sense of nostalgia or allegiance to the brand.
In recent years, Pizza Hut's share has been divided and spread to its more modern, agile rivals. To keep up its high labor and location costs, it would have to raise prices – which industry analysts say is difficult at a time when family finances are tightening.
A senior executive of Pizza Hut's global operations said the acquisition aimed “to safeguard our dining experience and protect jobs where possible”.
It was explained its first focus was to maintain service at the remaining 64 restaurants and off-premise points and to help employees through the change.
But with so much money going into running its restaurants, it likely can't afford to invest too much in its delivery service because the market is “difficult and using existing external services comes at a expense”, analysts say.
But, he adds, reducing expenses by withdrawing from oversaturated towns and city centres could be a effective strategy to adapt.
